Leaving New Zealand has several important tax obligations that many people overlook. From filing a final tax return to updating your KiwiSaver and notifying IRD of your non-residency, this guide covers what you need to do before and after you go.
When you leave NZ: (1) file a final IR3 covering the period you were resident, (2) notify IRD you are becoming a non-resident (via myIR), (3) if you keep NZ income (rental, interest), update payers with your non-resident status so NRWT applies at the correct rate, (4) consider KiwiSaver — you cannot withdraw it until you have been a non-resident for 12+ months (and even then only for permanent emigration to non-Australia countries), (5) check if you owe terminal tax or are owed a refund.
Step 1: File Your Final NZ Tax Return
Your final NZ tax return (IR3) covers the period from 1 April (start of the NZ tax year) to the date you cease being a NZ tax resident.
In the return, include:
- All NZ income from the start of the year to your departure date
- All worldwide income earned while you were a NZ resident
- Any NZ-sourced income earned as a non-resident (if applicable)
If you depart partway through the tax year, you file a single IR3 for the full year but note the split between resident and non-resident periods. IRD’s guidance allows this on a single return.
Step 2: Establish Non-Residency
Leaving NZ does not automatically make you a non-resident. You must break both residency tests:
- Remove your permanent place of abode — sell your home or, if renting it out, ensure you have no right to occupy it
- Move your family overseas — your primary family ties should be in the new country
- Stay away — both the 183-day test and the place-of-abode test must be broken
Notify IRD through myIR:
- Log in to myIR
- Profile → Update personal details
- Update your country of residence
- IRD will update your tax status
If your non-residency start date is unclear, consider applying for a binding ruling from IRD.
Step 3: Non-Resident Withholding Tax (NRWT) on NZ Income
Once you are a non-resident, any NZ-sourced passive income is subject to Non-Resident Withholding Tax (NRWT) rather than resident withholding tax (RWT):
| NZ income type | NRWT rate (standard) | NRWT with DTA |
|---|---|---|
| Interest from NZ bank | 15% | May be reduced (e.g., 10% for many DTAs) |
| Dividends from NZ companies | 15% | 15% (standard DTA rate) |
| Royalties | 15% | Varies by DTA |
Notify your NZ bank and any NZ investment providers of your non-resident status so they apply NRWT at the correct rate instead of RWT.
If you have a NZ rental property, you continue to file an IR3 as a non-resident for the rental income (not subject to NRWT — rental income requires a return).
Step 4: NZ Rental Property as a Non-Resident
If you keep a NZ rental property:
- You are still taxed on the NZ rental income as a non-resident
- File a non-resident NZ IR3 each year for the rental income
- Deductible expenses apply the same as for residents
- If you use a property manager, they must withhold tax at 20% from rent collected (non-resident rental withholding tax) unless you elect out
Non-resident taxpayers with NZ rental income can elect to have tax withheld by their property manager (simpler) or file an IR3 and pay the correct amount at year end.
Step 5: KiwiSaver When Leaving NZ
KiwiSaver is locked in for most leavers. You cannot simply withdraw it when you leave:
Leaving for Australia
Australian citizens and residents leaving NZ permanently can transfer their KiwiSaver balance to an Australian superannuation fund — but cannot withdraw it as cash. The transfer is from KiwiSaver to an Aus super fund.
Leaving for all other countries
You can apply for a permanent emigration withdrawal after:
- You have been living overseas for 12 months continuously (no return visits of more than 30 consecutive days)
- You are leaving NZ permanently (your application must declare this)
- You have requested this from your KiwiSaver provider and IRD approves
Note: Withdrawing KiwiSaver on emigration is taxable — the government contribution ($521.43 maximum per year) may be required to be repaid.
Pending Tax Obligations After Departure
Before leaving, check:
- Tax refunds owed: Log in to myIR to check if you have a pending refund — ensure your bank account is current so any refund is deposited
- Tax owing: Any outstanding income tax or provisional tax must be paid before departure (or arrange a payment plan)
- Student loan: If you have a student loan, overseas repayment obligations begin after 6 months overseas — contact IRD about overseas-based borrower repayment rates
Frequently Asked Questions
If I am leaving NZ permanently, do I need to file any future NZ tax returns?
Only if you have NZ-sourced income (rental property, NZ employment income, NZ interest if not fully covered by NRWT). If NRWT is correctly withheld on all passive income, no further returns are needed.
I plan to come back to NZ in 2–3 years. Should I maintain NZ residency?
It depends on your circumstances. If you have significant overseas investment income, becoming a non-resident may save tax. But re-establishing NZ residency triggers the 4-year transitional resident clock again. Talk to an international tax specialist before making this decision.
My partner is staying in NZ. Will I still be a NZ tax resident?
Almost certainly yes — a spouse/partner remaining in NZ with the family home is one of the strongest indicators of a permanent place of abode. You would likely remain a NZ tax resident even if working overseas.